Real Estate Law: Understanding Deeds, Easements, and Loans, Exams of Real Estate Management

Download Real Estate Law: Understanding Deeds, Easements, and Loans and more Exams Real Estate Management in PDF only on Docsity! California Real Estate Practice Exam #2 Latest Exam Questions with Answers. 1. An escrow closed on May 16, 2002. Property taxes for the fiscal year 2002-03 Are: (A) Seller's personal responsibility; (B) Buyer's personal responsibility; (C) A lien on the property; (D) None of the above - Correct answer c 2. On June 10, a prospective buyer gave broker and signed the usual form of an offer to deposit to a purchase property. The deposit form included the statement, this offer is irrevocable for five days. On June 11, and before the offer had been accepted by the seller, the buyer contacted the broker and withdrew his offer and demanded the return of his deposit. The broker: (A) Has until June 16 to obtain the seller's the acceptance; (B) Has until June 15 to obtain the seller's acceptance; (C) Must return deposit to the buyer as demanded; (D) Must place the deposit in a neutral escrow until the five day period expires - Correct answer c 3. The lessee of an apartment and the owner of a condominium have many things in common. Which of the following is true for both? They each hold: (A) A fee interest; (B) An estate in real property; (C) A less than freehold estate; (D) An estate of inheritance - Correct answer b 4. In a contingency sale, if the contingency cannot by met by the buyers, the deposit: (A) s refunded to the buyers; (B) The buyers get 1\2 the deposit back, the sellers keep 1\2; (C) The sellers are entitled to the full deposit; (D) The broker keeps the deposit as damages. - Correct answer a 5.Who is responsible for the disclosure of Mello Roost bonds against the property: (A) Seller, (B) Seller's agent (C) Buyer's agent; (D) Both buyer and seller's agent - Correct answer a 6. Ron owns a single family home which rents for $$00 per month. A home across the street rents of 5690 month and Ron applies the same gross rent multiplier to his home as per recently sold for $78,000. If was used on the home across, what would be the value of Ron's home: (A) $50,000; (B) $67,800; (C) $69,565; (D) $70,909 - Correct answer b 7. When a real estate licensee handles the sale of a personal property mobile home, the agent must give written notice to the Department of Housing and Community Development within how many days? (A) 3 calendar days; (B) 5 business days; (C) 10 calendar days; (D) 10 business days - Correct answer c 8. The presence of a corporate seal on a deed: (A) Means that consideration was paid; (B) Implies that the proper or authorized person signed the deed; (C) Would indicate that title is being conveyed to a corporation; (D) Is needed for recording this instrument - Correct answer b 9. Of the purchase agreement is: (A) The date the buyer gave the deposit, (B) The date the date buyer signed the offer; (C) The date the seller accepted the buyer's offer, (D) The date the buyer receives proper communication of the seller's acceptance - Correct answer d 10. A prospective purchaser is interested in buying a lot in the mountains from a subdivide who is not a real estate licensee. The buyer wishes to know about sewer assessments, liens, and utilities to his lot, blanket encumbrances, and maintenance of streets. The source that would P a g e 1 | 17 provide all of this information is the: (A) County engineer, (B) Real estate Commissioner; (C) County planning director; (D) Subdivide - Correct answer b 11. If a licensed real estate broker wishes to operate an office under a fictitious business name, the broker must: (A) File the name with the county recorder in the county of the place of business; (B) Publish the name in the newspaper as required by law, (C) Have a license issued by the Department of Real Estate after the name has been approved by the Commissioner; (D) Do all of the above - Correct answer d 12. A broker took an exclusive listing to negotiate a loan of $2,000 for a borrower. The listing may not run for longer than: (A) 15 days; (B) 30 days; (C) 45 days; (D) 60 days - Correct answer c 13. An owner of a single family dwelling has leased the house for two years. One day she drives by the rental and notices a painter is painting the house. The owner did not hire the painter. In order to protect herself from a mechanic's lien, the owner should file and post a: (A) Notice of Completion; (B) Notice of Cessation; (C) Notice to Quit; (D) Notice of Non-responsibility - Correct answer d 14. A buyer gave the broker a deposit in connection with a purchase offer. The buyer changed his mind before the offer was the agent do with the deposit: (A) Give it all back to the accepted. What should Give buyer; (B) Keep part of it and give the rest back to the buyer; (C) Place it in a trust account; (D) it to the seller as liquidated damages - Correct answer a 15. When an agent is accused of "puffing," the agent might be guilty of which of the following: (A) Trying to convince a potential seller of his wide popularity among local people; (B) Convincing the appraiser to assign higher value the property than is justified by the comparable recent sales in the area; (C) to the features of the property or neighborhood when showing property to prospective Exaggerating buyers; (D) Convincing a seller to offer a higher commission than is customary for that type of property - Correct answer c 16. The Franchise Tax Board does not require a buyer to withhold a portion of the sales price from the seller when: (A) The property is residential; (B) The seller refuses to pay the withholding; (C) It was the seller's principal residence or the property is less than $100,000; (D) None of the above - Correct answer c 17. An agent becomes the agent of the seller when both the seller and the agent sign: (A) Purchase agreement; (B) Transfer Disclosure Statement; (C) Agency Disclosure Statement; (D) The Listing Agreement - Correct answer d 18. Which of the following is true concerning a "buyer agency?" (A) A buyer agency is illegal in California; (B) In a "buyer agency" the agents represents buyers only; (C) In a "buyer agency," there is still a possibility of a dual agency; (D) There is no difference between a "buyer agency" and a listing agency - Correct answer b 19. A broker is representing a subdivide selling a new large subdivision of single family dwellings. The broker knows that conformity is the key to maintaining optimum value in the new subdivision. The broker and his salesperson decide that in order to achieve this goal, they will quote higher prices to minorities than to other buyers. This would be: (A) Illegal for the broker and the salesperson; (B) Illegal for the seller; (C) Not illegal for the broker or salesperson; (D) P a g e 2 | 17 37. Potential Buyer Potter seeks securing a loan for such to purchase a home in a new subdivision. A licensee assists Potter in purpose from a savings and loan association, explaining to Potter the loan processing costs that will be involved at the closing. Under these conditions, a copy of HUD Booklet, when the loan is arranged, "Settlement Costs and You": (A) Need not be provided to Potter if the procedures and costs of the loan by the licensee; (C) Must be have been adequately explained; (B) Must be provided immediately lender within three provided to Potter within one week; (D) Must be provided to Potter by the days of the loan application - Correct answer d 38. Jody as a one-year leasehold interest in Harbor House. The interest automatically renews itself at the end of each year. Jody's interest is referred to as a tenancy: (A) For years; (B) from period to period; (C) at will; (D) at sufferance - Correct answer b 39. An addendum would be (A) An addition to a single family residence which has not been permitted, (B) Additional documents attached to and made part of a contract; (C) The listing broker's decision to extend a listing because he has not yet found a buyer; (D) The conversion of a double garage to a "granny flat" - Correct answer b 40. What does not have to be included with a Seller's Transfer according to Disclosure Statement? (A) Repairs made according to building codes; (B) Fences shared with a neighbor; (C) Deed restrictions; (D) Conditions - Correct answer a 41. Select the order of words that correctly match the Following definitions: Sudden, perceptible loss of land by action of water; Gradual accumulation of land deposited by the shifting of the river or ocean's action; Wearing a way of land by the action of water or wind; Land increased by the buildup of sediment. (A) Accretion, Avulsion, Allusion, Erosion (B) Avulsion, Accretion, Erosion, Allusion (C) Allusion, Accretion, Erosion, Avulsion (D) Erosion, Avulsion, Allusion, Accretion - Correct answer b 42.Littoral rights refer to: (A) The right of a landowner whose land borders a river or stream to have reasonable use of that water; (B) The right of a farmer to claim excess water from lakes or reservoirs: (C) A landowner's claim to use water in large navigable lakes and rivers adjacent to his property up to the high-water mark; (D) The right of a landowner to use the air chooses space above his land In any manner he - Correct answer c 43. The right granted by an owner of real property to a telephone company for the purpose of erecting poles to support telephone wires over the property creates: (A) An exclusive easement; (B) A specific lien; (C) An encumbrance; (D) A declaration of restrictions - Correct answer c 44. Steve has an old building where he runs his business. The city through eminent domain. (A) The city pays has just condemned the property only just compensation; (B) The city pays compensation for the property and separate compensation for his stock-in-trade; (C) The city must pay compensation for the property, stock-in-trade and cost of living; (D) The city does not have to pay compensation - Correct answer a P a g e 5 | 17 45. The purpose of a "hold harmless" clause in a listing contract is to protect the agent from liability for: (A) Any and all lawsuits resulting from the potential buyer; (C) False information transaction; (B) Misrepresentations made by the agent to given by the seller concerning the condition of the property; (D) Damages as a result of the buyer misrepresenting his qualifications to get the loan - Correct answer c 46. In order to accurately calculate a gross rent multiplier, the appraiser would obtain from comparable properties the: (A) Net income and selling price; (B) Original cost and the annual income; (C) Annual rent and the selling price; (D) Net income and the capitalization rate - Correct answer c 47. Which of the following statements is most nearly correct concerning buyer's agency: (A) It is not legal in to California; (B) In buyer's agency, the seller is forbidden to pay any commission, directly or indirectly, the buyer's agent; (C) Buyer's agency often gives rise to disputes over who is the "procuring cause"; (D) The buyer's broker has no agency relationship with the seller or the listing broker, and is therefore not liable for their actions - Correct answer d 48. When an unincorporated non-profit organization wishes to sell property which it owns, the one(s) who sign the grant deed would be: (A) The president and recording secretary; (B) Any member as long as there are two; (C) The Secretary of State of California; (D) The treasurer - Correct answer a 49. For Funds may be withdrawn from a real estate broker's trust account by an unlicensed employee: (A) For payment of miscellaneous expenses; (B) For payment of general operating expenses provided proper account is made and money is returned; (C) Only for payment of advertising; (D) When the unlicensed employee has written authorization from and broker and has fidelity bond coverage - Correct answer d 50. A broker sells house advertised "as is." There are no obvious defects that would be evident to prudent buyer on inspection. The sellers and broker, however, know that the plumbing is very defective. The buyer moves in and discovers the defects. He-she sues the broker and sellers. The suit will probably be the following: (A) Successful because the sellers and brokers withheld material information been disclosed; (B) Successful, because the 'as is" clause does not override the that should have sellers' and brokers' duty to fill out a Transfer Disclosure Statement revealing all known material facts whether the defects are evident or not; (C) Unsuccessful, because selling the property "as is" gives constructive notice that there are defects; (D) Unsuccessful, because the defects would have been revealed if the purchase agreement had contained an inspection clause. - Correct answer b 51. For FHA purposes, acquisition costs include nonrecurring closing expenses. Which of the following would not be included: (A) Discount points; (B) FHA appraisal fee; © Credit report fee; (D) Impounds for property taxes - Correct answer d 52. Buyer Frank sued broker Sam for a misrepresentation in the sale of a single family home. He was awarded a judgment in the amount of $100,000. Broker Sam was bankrupt and unable to pay the judgment. Buyer Frank appealed to the Real Estate Recovery Account. Assuming the Recovery Account agrees to pay Frank, he will receive a maximum of: (A) $50,000; (B) $30,000; (C) $70,000; (D) $100,000 - Correct answer a 53. Mrs. Mears owned 20 acres of rural land. Mr. Swanson purchased 10 acres from Mrs. Mears for $10,000. Mr. Swanson immediately sold the 10 acres to Mr. Rowland for $25,000. P a g e 6 | 17 Mrs. Mears may: (A) Sue Swanson if she can prove Swanson knew the land had a higher inherent value then he paid her, (B) Mrs. Mears has no recourse because this is a legal transaction; (C) Mrs. Mears can sue Mr. Swanson and recover the "secret profit"; (D) Mrs. Mears can report Mr. Swanson to the Department of Real Estate on the basis of fraud - Correct answer b 54. Which of the following would terminate an agency? (A) Mutual consent; (B) Death of the broker or seller; (C) Destruction of the property; (D) All of the above - Correct answer d 55. The solicitation of a fee from an owner to promote the sale or rental of any property by any means other than advertising in a newspaper of general circulation is called: (A) A promotion fee; (B) An advertising fee; (C) An advance fee; (D) None of the above - Correct answer c 56. Sanderson purchased a home in which he expects to live. As part of the purchase price, he contracted for a first mortgage with a federal savings and loan association. Under the provisions of the Federal Truth-in-Lending Act, he may: (A) Have a right to cancel because the mortgage creates a lien against his property; (B) Not cancel because a federal savings and loan is exempt from the Act; (C) Cancel because all real estate loans are entitled to certain cancellation rights under the Act; (D) Not cancel because first mortgage to finance the purchase of his home carries no right to cancel - Correct answer d 57. Two buildings are located in the same area, of comparable size, and both with long term leases. One building is leased to the government as a post office and the other to hardware store. The capitalization rates would be: (A) The same; (B) Higher for the hardware store; (C) Higher for the post office; (D) Proportional - Correct answer b 58. Cord era Realty presented an offer for ABC Corporation on a $40,000 parcel of land. It turns out that broker Cord era and his associates are officers in ABC Corporation. Which of the following is correct regarding Cord era’s responsibility to disclose his interest in ABC Corporation: (A) Since Cord era is acting as a broker and not as a buyer, he has no duty to disclose that he and his associates are officers in ABC Corporation; (B) If the offer is full price, the fact that Cord era and his associates are officers in ABC Corporation is not relevant and need not be disclosed; (C) Broker Cord era must reveal that he IS acting as a broker and that he and his associates are officers in ABC Corporation, as this information would be considered a material fact; (D) Broker Cord era does not have to disclose that he and his associates are officers of ABC as long has he waives his commission - Correct answer c 59. When a buyer of a residence, after signing a valid agreement of sale, asks the broker for permission to move into the property before the sale closes, the broker should: (A) Deny the permission; (B) Grant the buyer oral permission; (C) Have the buyer sign a temporary lease for the property; (D) Obtain written consent from the owner - Correct answer d 60. When a real estate broker is servicing a loan by collecting payments for the lender, how long may the real estate broker keep the payments in the trust account before dispersing the money to the lender: (A) 10 days; (B) 14 days; (C) 25 days; (D) 60 days - Correct answer c? 61. Which of the following are implied warranties on a grant deed: (A) The grantor is the owner of the property; (B) The grantor has not already conveyed title; © encumbrances placed on the title by the grantor; (D) Both (B) and © The grantor has disclosed all - Correct answer d 62. Assume that you are a real estate licensee who has just shown several houses to P a g e 7 | 17 78. If two parties enter into a valid contract and one of the parties dies or becomes incompetent, the contract is: (A) Valid if it was signed before the party died or became incompetent; (B) Invalid unless the heirs or guardian sign an acknowledgement; (C) Invalid upon the death or incapacity of the one party; (D) Voidable by the living or capable party - Correct answer c 79. An unlicensed secretary working in a real estate office may legally: (A) Discuss terms for sale of property advertised by the broker; (B) Type listing agreements for salespersons; (C) Collect rent on properties managed by the office; (D) Quotes prices on listed property over the phone - Correct answer b 80. Conventional loans are distinguished from FHA insured loans by all of the following except: (A) Conventional loans provide for lower loan-to-value ratio; (B) FHA loans generally provide for a longer repayment period; (C) Conventional loans always permit deficiency judgment, while FHA loans never allow them; (D) Interest rates on FHA loans Are generally lower than those on conventional loans - Correct answer c 81. Mary has assigned her apartment lease to Ben and the landlord has agreed to the assignment. Who is liable for payment of the rent? (A) Ben is liable to Mary; Mary is liable to the landlord; (B) Both Ben and Mary are liable to the landlord; (C) Only Mary is liable; (D) Only Ben is liable - Correct answer d 82. An appraiser intends that the estimate of value as disclosed in his appraisal report on a property be valid: (A) As of the date of the appraisal only; (B) For a period of three months after the appraisal date; (C) Until the close of escrow; (D) Until the loan is funded - Correct answer a 83. The consent of the beneficiary in trust deed be would require for (A) Boundary line adjustments; (B) Consolidation agreements; (C) Change in restrictions; (D) All of the above - Correct answer d 84. Any purchase agreement, if it recommends the manner in which title is taken, is considered: (A) Tax advice; (B) Legal Advice; (C) Discrimination; (D) All of the above - Correct answer d 85. June, Vivian one-year lease and moves into Street view Apartments. Vivian deposits the required security deposit with the landlord. Six months later, Vivian pays the January rent and mysteriously moves out. Vivian does not arrange for a sublease or an assignment and makes no further rent payments. The apartment is still in good condition. What is Vivian's liability to the landlord under these circumstance? (A) Because half the rental amount has been paid and the apartment is in good condition, Vivian has no further liability: (B) Vivian is liable for the balance of the rent, plus forfeiture of the security deposit; (C) Vivian is liable for the balance of the rent, offset by the amount of security deposit; (D) Vivian is liable for the balance of the rent, plus the security deposit and any marketing costs the landlord incurred - Correct answer c 86. A buyer on a land contract defaulted. The seller's recourse would be: (A) to file suit for possession and rents; (B) Foreclose; (C) File an unlawful detainer action; (D) To declare the land contract void and have the sheriff move the vendee out - Correct answer a 87. A broker has received an accepted offer on a 10-acre parcel. The broker has just learned that the buyer has been buying up land in the area at a much higher price than the seller agreed to take. The broker should: (A) Notify the seller as to the facts; (B) Recommend that the seller P a g e 10 | 17 breach the contract; (C) Do nothing, because the seller if obligated to convey; (D) Do nothing, because the agency has been completed with the procurement of the buyer - Correct answer a 88. A broker and a seller entered into an Exclusive Authorization and Right to Sell Listing. Which of the following is correct if the seller wishes to revoke the contract: (A) The seller cannot unilaterally revoke the contract; (B) The seller must obtain the permission of the broker; (C) The seller may revoke the contract with a phone call; (D) The seller may revoke the contract with a certified letter and notice - Correct answer d 89. How much of a broker's personal funds may be contributed to a client's trust fund bank account to offset any bank service charges? (A) $25.00, or the amount of the charges by the bank; (B) $100.00; (C) $200.00; (D) Nothing - Correct answer c 90. A property is inherited by heirs. The heirs abandon the property and the property is acquired by adverse possession. This: (A) Needs recording; (B) No recording is required since property was acquired through adverse possession; (C) Will require a Quiet Title Action; (D) Will require a quit claim deed signed by the heirs - Correct answer c 91. If a tenant moved out of a rented store building because access to the building was blocked as a result of the landlord's negligence: (A) The tenant would have no legal recourse against the landlord; (B) The landlord would be liable for the rent until the expiration of the lease; (C) The landlord would have to provide substitute space; (D) The tenant would be entitled to recover damages from the landlord - Correct answer d 92. A tenant signs lease that includes a schedule of rent increases on specific dates over the course of the lease term. What kind of lease has this tenant signed? (A) Percentage; (B) Net; (C) Graduated; (D) Index - Correct answer c 93. Mr. Smith died in an accident on January 15, 1999. The broker insisted that a son, who inherited the property, sell to a buyer who had made an offer that Mr. Smith had been considering. Under these circumstances: (A) Inasmuch as the estate of a deceased person is liable for all contracts entered into by that person before death, the son must complete the sale; (B) Inasmuch as the estate of the decedent is liable for all contracts entered into by the decedent, if the son refuses to complete the transaction and sell the property, he will owe the broker a full commission; (C) The contract was terminated by the death of the seller, and the son has no obligation to sell, or to pay a commission; (D) The listing is binding upon the heirs of the deceased, and the son would have to present the offer to the probate court, and if it were approved, complete the sale - Correct answer c 94. A landlord is trying to evict a tenant and serves an eviction notice. Under what circumstances could a tenant remain in the property? (A) The tenant has not had hot water for months; (B) Unlawful entry by the landlord; (C) The lessor failed to repair a weak staircase; (D) All of the above - Correct answer d 95. An offer on a listed property was accepted and the acceptance was communicated to the buyer. However, before going to escrow, the seller found a buyer who was willing to pay all cash and notified the broker that the original deal was rescinded: (A) The buyer must be refunded the amount of the deposit, but he has no further claim or right against the seller; (B) The broker would not be entitled to compensation since escrow had not opened and the transaction had not P a g e 11 | 17 closed; (C) The broker has good legal basis for a commission claim; (D) The broker could probably void the truncation which the Seller made with the all-cash buyer - Correct answer c 96. The federal Equal Credit Opportunity Act allows lenders to discriminate against potential borrowers on the basis of: (A) Race; (B) Sex; (C) Dependence on public assistance; (D) Amount of income - Correct answer d 97. Kevin still has five months remaining on a one-year apartment lease. When Kevin moves to another city, he transfers possession of the apartment to Linda for the entire remaining term of the lease. Linda pays rent directly to Kevin. In this situation, Kevin has become a (n): (A) Assignor; (B) Sub lessor; (C) Sub lessee; (D) Lessor - Correct answer b 98. When lender on a graduated payment mortgage is making disclosures that are required under the Truth-in-Lending law, concerning advertising, he must disclose the: (A) Lender's name; (B) Broker's name; (C) Property location; (D) Different monthly payments - Correct answer d 99. What would transfer possession of a property without transferring ownership to the property? (A) A trust deed; (B) Sublease; (C) Land contract; (D) Mortgage - Correct answer b 100. An owner of property which was located near an airport was constantly bothered by the noise of low flying aircraft. He wanted to bring a court suit and force the city to condemn the property because of the noise. This would be an example of: (A) Condemnation; (B) Inverse condemnation; (C) Escheat; (D) Eminent domain - Correct answer b 101. Which of the following statements is true concerning escrow procedures: (A) A broker can hold an escrow for compensation for other parties when he has no interest in the transaction; (B) When the escrow requirements have been met, the escrow agency changes from a dual agency to a separate agency; (C) When the escrow holder is in possession of a binding contract between the buyer and seller, it is said to be a *complete escrow*; (D) The escrow officer acts as an arbitrator of arguments Between the buyer and seller - Correct answer b 102. A deed has a provision regarding racial and religious discrimination. The deed may be changed: (A) If the restrictions are discriminatory or offensive; (B) If the restrictions are pre- 1978; (C) If a title company agrees the wording is discriminatory or offensive; (D) By court action - Correct answer a 103. Financial institutions prefer loans that are low risk. If there is no down payment, what would be the best way for the lender to guarantee himself against loss in the event of a default on the loan; (A) Low interest rate; (B) Increase in property value; (C) Low monthly payment; (D) None of the above - Correct answer b 104. A tenant signs a lease that includes the following clause: "The stated rent under this agreement will be increased or decreased every three months based on the percentage increase in the consumer price index (CPI) for that period." What kind of lease has this tenant signed: (A) Percentage; (B) Net; © Graduated; (D) Index - Correct answer d? 105. A lien is first created when which of the following is recorded: (A) A notice of non- responsibility; (B) An easement; (C) Trust deed; (D) Restrictions - Correct answer c P a g e 12 | 17 rescission begins when the: (A) Loan application IS submitted to the lender; (B) Lending instrument is signed by the borrower; (C) Loan is approved by the lender; (D) Loan is funded by the lender - Correct answer b 126. A broker has been in business for many years. He currently has 40 exclusives listings in his office. The broker dies and his daughter, who is also broker, takes over for him. What should she do about the current listings? (A) Just inform the sellers that she is taking over; (B) She must attempt to renegotiate all of the listings; (C) She need only inform the Bureau of Real Estate that she is now the broker of record; (D) Do nothing - Correct answer b 127. A surveyor is asked to survey land and determine its legal description. His legal description begins with the phrase, "Beginning at a point on the northerly edge of M Street 100 feet easterly of the NE corner of the intersection of M and Seventh Street, and running thence...." which of the following methods of land description is being used: (A) U.S. Geographical Survey System; (B) City Rural Subdivision Map; © U.S. Government Rectangular Survey System; (D) Metes and bounds - Correct answer d 128. A licensee who speaks of a "grandfather" clause is probably referring to: (A) Inheritance rights of a direct descendant; (B) Public restrictions on the use of a property: (C) A change in zoning; (D) Continuation of a non-conforming use - Correct answer d 129. The provisions of the Subdivision Map Act are enforced by the: (A) Real Estate Commissioner; (B) State Contractor's License Board; (C) Planning Commission; (D) State Land Commissioner - Correct answer c 130. As to ethics, the best guidelines to determine if an action is ethical will be found in which of the following? (A) The "Realtor's Golden Rule;" (B) The Business and Professions Code; (C) The conduct of other real estate agents in your office; (D) What is in the best interest of the real estate licensee. - Correct answer b 131. One of the principal purposes of "RESPA" (Real Estate Settlement Procedures Act) is: (A) To fix the settlement costs in all real estate transactions; (B) To fix the prices of settlement costs on residential property built for 1-to-4 families; (C) To provide the prospective buyer the opportunity to shop for settlement services; (D) To standardize closing settlement services in all parts of the country - Correct answer c 132. All of the following statements are true concerning an "in-house sale," except: (A) The listing broker can buy the property himself; (B) The listing broker can act as an agent for the seller only; (C) The listing broker can act as an agent for the buyer only; (D) The listing broker can act as a dual agent for seller and buyer - Correct answer c 133. Which of the following best describes "puffing." (A) A misleading assertion about the property made by the seller or the agent that is expected to be interpreted as a true fact; (B) A superlative statement about the property made by the seller or agent that should not be considered an assertion fact nor interpreted as a representation of fact; (C) A deliberate representation made in reckless disregard of its truth or falsity; (D) Employing deceptive advertising to induce a buyer to make an offer on a property - Correct answer b 134. Misuse of the term "Realtor" is: (A) A violation of the California Real Estate Law; (B) A felony offense; (C) Unethical but not illegal; (D) Only unethical in California Escrow, the - Correct answer a P a g e 15 | 17 135. A real estate broker presented an offer to the seller, which the seller accepted. During the escrow, the seller discovered that the buyer was the brother of the broker. This relationship was not disclosed in the offer, the seller can: (A) Do nothing because the property sold for the full price; (B) Cancel the transaction, but be liable for the full commission; © Cancel the transaction without liability for the commission; (D) none of the above - Correct answer c 136. The conscious charging by a private lender of more than the maximum amount of interest allowed by law is known as: (A) Penury; (B) Leverage; (C) Usury; (D) Assemblage - Correct answer c 137. Homes built after which of the following years, do not require the Earthquake Hazards Disclosure booklet be given to the buyers: (A) 1953; (B) 1960; (C) 1968; (D) 1975 - Correct answer b 138. Which of the following would not be subject to prorating in an escrow? (A) Title insurance premium; (B) Property taxes; (C) Rents; (D) Condominium assessments - Correct answer a 139. Valuable, adequate, good, and sufficient in a contract would apply to: (A) Performance; (B) Just compensation; (C) Consideration; (D) A bilateral contract - Correct answer c 140. A real estate licensee, who negotiates a loan secured by a trust deed on real property, must see that the time trust deed is recorded in the name of the lender-beneficiary: (A) Prior to the that any funds are disbursed; (B) Within 10 days if the lender has given written authorization to release the funds prior to recording; (C) Within 15 days after the release of the funds; (D) Both (A) and (B) above - Correct answer d 141. A broker can handle the sale of a mobile home as long as it is: (A) Transferred by a grant deed; (B) Registered; (C) Over 32 feet; (D) All of the above - Correct answer b 142. Which of the following is a required element of all contracts? (A) Payment of money; (B) Meeting of the minds; (C) In writing; (D) Signatures - Correct answer b 143. The planning commission has given Mr. Perez permission to construct an apartment building on his land. The zoning required for this building is: (A) R-3; (B) C-3; (C) M-3; (D) A-3 - Correct answer a 144. Which of the following is a true statement regarding fair housing and discrimination: (A) A real estate licensee is not liable in a fair housing lawsuit if he-she had no intent to discriminate; (B) The landlord renting a single family dwelling can discriminate without liability; (C) The owner renting out four rooms where he-she resides can discriminate; (D) Apartment complexes must be built to in a home accommodate people with physical disabilities or handicaps - Correct answer c 145. When a real estate licensee handles the sale of a used mobile home, the agent must give written notice to the Department of Housing and Community Development within how many days: (A) 10 business days; (B) 10 calendar days; (C) 7 business days; (D) 7 calendar day - Correct answer b P a g e 16 | 17 146. The maximum fine that may be imposed by the Real Estate Commissioner against a broker who pays an unlicensed person for soliciting borrowers or negotiating real estate loans is: (A) $3,000; (B) $5,000; (C) $20,000; (D) $50,000 - Correct answer c 147. A borrower is the credit declined for a loan based on his credit report. The lender refuses to let the borrower see receive report: (A) Lender would have to clear the borrower's credit report; (B) Borrower would $5,000 award; (C) Borrower may request a free copy of the report from the credit company and dispute the accuracy or completeness of any information; (D) Borrower may receive damages up to the loan amount - Correct answer c 148. The difference between riparian and littoral rights: (A) Riparian rights are obtained by appropriation and Littoral rights run with the land; (B) Riparian rights refer to the right of a landowner to water from nearby lakes or rivers; (C) Riparian rights refer to the right to use water from adjacent rivers and streams, littoral is the right to use water from adjacent lakes and oceans; (D) There is no difference between riparian and littoral rights - Correct answer c 149. Salesperson Jones violates a provision of real estate law. How long does the Real Estate Commissioner have to take action is most instances? (A) 30 days; (B) Three years for most acts; © Two years for most acts; (D) By the next business day after being informed of the violation - Correct answer b 150. If a broker keeps records on a computer, how often must he backup the records: (A) Monthly; (B) Weekly: (C) As necessary; (D) Daily - Correct answer d P a g e 17 | 17